10 Tips For Quick Loan Approval
So you say you want to apply for a quick loan? Unfortunately, banks and lenders don’t just hand out cash to anyone. Prior to approval, the lender will need to vet you and make sure that you’ll be handle paying back the loan. If you’ve been defaulting all over the place, you best believe that you won’t get a loan any time soon. However, if you follow our simple tips you can slowly build your way towards becoming a good candidate for quick loan approval.
- Build a good credit history
- Maintain an above-average credit rating
- Meet the loan criteria
- Show you can keep a job
- Try to establish a good debt-to-income ratio
- Apply for the right amount
- Get your paperwork in order
- Don’t rush the application
- Make sure you can make the payment
- Don’t ask everyone in town for money
1. Build a good credit history
To be a good candidate for quick loan approval, you need to be able to demonstrate that you have a good credit history. Building up a credit history to get a credit score can take time. But it’s worth it to wait a while before applying to increase your chances of being approved.
But don’t fret if you’re history isn’t there yet—you don’t have to be perfect to get approval for a loan. You just need to establish a history of making payments on time and demonstrating an ability to handle making those payments. So you might want to start by taking out smaller loans before trying to apply for a larger sum to build your history up.
You can check your credit history and score for free online with Equifax or another Australian credit reporting body. By the way, you can get access to your credit report for free once every 3 months in Australia.
2. Maintain an above-average credit rating
Hand in hand with the credit history, you’ll want your credit rating to be at least average or above average to expect a decent chance of approval on loans. Bankruptcy, defaults, and even late or missed payments will all ding your credit rating. And, yes, you can recover from these impacts. But you need to give it time and demonstrate a better ability to handle money.
Or, if you’re just building your credit rating, then make sure you handle your money carefully and don’t rack up a bunch of debt on your credit cards. You’ll want to do everything you can to keep your credit rating at a good score.
Read more about What Is A Good Credit Score & How To Improve It.
3. Meet the loan criteria
One of the most basic tips for quick loan approval is checking the eligibility requirements. And then checking them again just to be sure. There’s no point applying when you are going to be approved right off the bat. And it will only decrease your chances of being approved somewhere else if lenders see you have been declined several times recently.
For example, don’t apply for a loan that requires an excellent credit rating if you have subpar credit. You should look around and see what’s out there that is a better fit. So don’t despair if you have bad credit, there are cash loan options out there for you.
But do yourself a favour and look through the FAQs and the loan requirement list of any lender you’re considering. If you can check off each box, then go for it!
4. Show you can keep a job
In order to get quick loan approval, it helps to have a good employment history. Lenders want to see that you’re not going to up and quit your job, making it hard to make your payments. They will want you to have a good six months or more at a job.
The longer you’ve been with a good, steady job, the better it will look on your loan application. Job stability equals steady income, which equals the ability to make loan payments.
5. Try to establish a good debt-to-income ratio
If you’re drowning in debt, we can understand why you’re looking for a loan. However, a small personal loan might not be what you need at this point in your financial journey. Perhaps consider a debt consolidation loan to help get you on the right track.
Swoosh Finance offers Online Debt Consolidation Loans of up to $5000 to help get your debt back under control.
Keep in mind that if you only have a bit of debt, then you should be good to go. Lenders don’t mind debt as long you have an income that shows the ability to continue to pay off the debt.
6. Apply for the right amount
Don’t go crazy with the amount you ask for on your personal loan. The best chance of getting approved is to apply for the smallest possible amount that will help you out.
And even if the lender offers more, don’t be greedy. The smaller the payment, the easier it will be to make that payment and maybe even extra payments. So that you can actually achieve your financial freedom without being tied to unnecessary debt.
7. Get your paperwork in order
Beyond filling out the application, most lenders will require paperwork to validate you, your income, and other personal information. It’s a good idea to make sure you have access to important documents before you do your loan application.
In order to speed up your application, you will want quick, easy access to the required documents. Otherwise, you could spend days fumbling through the boxes in your closet and slowing down to process.
8. Don’t rush the application
Don’t be in such a hurry to turn in an application that you screw up any of the details.
It’s important that you don’t accidentally fill in the wrong number for your bank account, or worse, put in an extra number for your income. Or perhaps even make a simple error like reversing the number on your new address. Any of these issues could delay or even create a case for denial of your loan application.
So double-check your application, and you should be good to go!
9. Make sure you can make the payment
Before you agree to any loan, double-check that the payment actually works for your particular financial situation.
Make sure that with the interest calculated you can still make the final estimated payment. Because it’s better to keep searching for a loan than take a payment that will be a struggle the whole time.
So check your budget, do the calculations, and try to make sure the payments are made on the days you receive your paycheck. Automatic payments are your best friend in this situation. That way the payment is deducted when you get your check and paid immediately.
10. Don’t ask everyone in town for money
Sometimes it isn’t always a case of “if at first, you don’t succeed, try, and try again.” In the case of loan applications, you really want to do your homework and be pretty positive that you will get loan approval before you apply for a loan. Because each time your credit is checked, you take a hit on your points. So keep that in mind and be sure to find a lender that you believe will work for your situation.
We here at Swoosh Financial understand that everyone is at different points in their financial journey and we’re to help along the way. If you need a small quick cash loan, check out our criteria and loan application. We just might be the answer!